4/15/15 was up +$0.87. That's exactly the same as yesterday. The model projects that the CME Lean Hog Index component on the 4/15/15 kill will be strong - something like +0.65 to +0.95. Packers are getting a fair inventory of more expensive hogs purchased. If there were somewhat more of these expensive hogs slaughtered yesterday, the component could be even stronger. When the 201 report comes out this morning, we will have the cash settlement index for the JJJJs.

Packers did not get a very strong purchase yesterday. Only 86.4% of the moving average daily purchases. That was the second day of fairly weak purchases. This may set the stage for higher bids by packers. Additionally the number of hogs scheduled for delivery the past two days has been on the low side.

I still like the short side of the MMMs. This morning I will add some more long K/M spreads if they dip a little.

Best wishes,

dhm